Corruption law not working for banks: Arun Jaitley

Corruption law not working for banks: Arun Jaitley

"Please remember, you are talking about a time when inflation was 10-11 per cent".

He said the Securities and Exchange Board (Sebi) was looking into it. He opined that alternate chit funds could potentially take the space of banks. But what to do with those who run operations throughout the country?

However, with the sluggishness setting in the economy, the lending rate came down and so also interest on the savings accounts, Jaitley said.

The Central government will ensure eight per cent guaranteed interest on fixed deposits by senior citizens and pensioners, said Finance Minister Arun Jaitley in the Rajya Sabha on Thursday, according to media reports.

The new repo rate at 6 per cent is the lowest in six- and-a-half years.

The Finance Minister called for a political consensus and will to address the problem of mounting non-performing assets (NPAs) of public sector banks.

The Reserve bank of India (RBI) has already identified the top 12 loan defaulters for bankruptcy resolution, but some of the promoters have objected to the defaulting companies being referred to the National Company Law Tribunal (NCLT) by banks for insolvency resolution, arguing that the lenders' move was arbitrary. He also said that RBI may refer more cases to the banks to intitiate insolvency proceedings against defaulters. RBI has taken up some hard cases. Without taking name of any such companies, Mr Jaitley said that the separate bills for the chit companies operating in a single state may be brought in by the state governments concerned, but for the Centre will bring the ill for the companies working in more than one state to regulate them. The Banking Regulation (Amendment) Bill, 2017, seeks to amend the Banking Regulation Act, 1949 and replace the Banking Regulation (Amendment) Ordinance, 2017, which was promulgated in May this year.